the latest on the google conference in san francisco where the company is talking the latest in android software, virtual reality and global payments. stephanie: jawbone-fitbit rivalry. erik: after years of setbacks and cost overrun, the military is in the final testing stages for the f 35 fighter jet. stephanie: good afternoon. i'm stephanie ruhle. mark: and i'm mark crumpton. let's start with a look at the markets this thursday. the markets have been down for the most part. down about 8.5 points right now, at 2115.

and ap selloff in china deadline for greece to make a debt payment. the industrial average is down 75 points. down adaq composite little more than .3%. gold continues to trade in a narrow range on this thursday. --ht now, gold is trading nymex crude down about .8%. oil paring losses. crude stockpiles declined for a fourth week. stephanie: let's take a quick look at the bond market. very quiet. not much happening. not much happening in we did

have some positive economic data today that made people feel more bullish about the economy. baby rates will move sooner than later. how about currencies? mark: look at euro-dollar. yen, 123.77. seeing a lot of green on the screen in the major currency markets on this thursday. stephanie: let's look at the top stories of this hour. it is the biggest acquisition ever in the tech world. -- $37 agreed to buy billion in cash and stock. the latest deal in an industry that has been hit by consolidation because of the rising cost of production and design. a singapore-based company that was once part of hp. broadcom is the biggest maker of wi-fi chips. pricemaker may pay a big to settle and ftc case over

generic drugs. they have agreed to pay $1.2 billion for the actions of a company it later but. it unlawfully protected a sleep disorder drug through agreements. mark: sepp blatter says he plans -- he presidedt over the opening of the fifa conference in zurich, switzerland. he addressed the corruption scandal that led to the arrest of nine officials. : i cannot monitor everyone all of the time. if people want to do wrong, they will also try to hide it. for the responsibility and

reputation and well-being of our organization and to find a way forward to fix this. the head of the european soccer organization has called on sepp blatter to quit. there was a big jump in contracts for new homes. rising nearly 3.5% in april to the highest level in nine years. the increase was almost four times higher than the median forecast of economists surveyed by bloomberg. they are being posted by laurel mortgage rates and a stronger job market. and aer mortgage rates stronger job market. applications front of limit benefits stayed below 300,000 for the 12 week in a row. it usually means there is a healthy level of hiring. the jobless rates approaching the fed's definition of full employment. that may lead employers to boost wages to retain workers. stephanie: david tepper is getting behind a new hedge fund providing capital for the first time in his storied career.

bloomberg news broke earlier giventhat mr. cap or is capital to start the asset management next year which will invest global credit. he joined in 2010 after running the business at morgan stanley. we've never seen this out of david tapper. big news given what a great year he has had. now trying to spread the wealth. good luck to gary cohen, president and coo of goldman. he is celebrating a special anniversary today. he released this photo from his first day 25 years ago. before joining the firm in 1990, he worked at the london metals exchange and the new york mercantile exchange. there's a couple other notable names. meyer is having a big

birthday. a big day on wall street. mark: he looks so young. babyface. stephanie: fresh in town from ohio. there's a look at the top stories. mark: coming up in the next half hour, we will take you to the google conference in san francisco. tech giants announcing its latest products and services. stephanie: the observation deck at the top of one world trade center is open to the public tomorrow. we will get a look at a view from 1200 feet up. costco's latest profits topped estimates. have you ever had the crab dip from costco? people love it. we will look at why the largest warehouse club chain is gaining over rivals like sam's club. if you thought the wearable wars were -- you just got a lot

uglier. ,awbone is going after fitbit taking them to court accusing the company of slandering its employees and making off with critical secrets. denies thet accusations and plans to fight back in court. here with some insight on the stories sheryl come in attorney and chair of the later employment -- labor employment group. she joins us from chicago. welcome to the broadcast. how strong is jawbone's case here? -- and hasntention been taking illegally? >> question. all we are facing right now is the allegations in a 30 page complaint. not had the opportunity to formally respond to the complaints, so we cannot surmise whether these allegations will be proven true and how the lawsuit will play out. stephanie: let's say you are

jawbone. you've gone through the complaint. who are doing questionable things just before leaving the company -- they were asking for meetings, taking files out of the building. how do you put the toothpaste back into the tube when r&d has now just walked out the door? outf these allegations play and job own is able to prove its case, the effect of these employees were downloading information and passing information to their personal e-mail and downloading information on thumb drives, certainly looks suspect and raises some questions about what their intentions are. mark: how would you define poaching? if employees are not under contract, aren't they free agents? poaching i the word

found interesting and one that is thrown around and lawsuits like this all the time. did nothing wrong particularly in california where there are no lawful non-competes in a setting like this. they could go from competitor to competitor as they see fit. stephanie: while these employees work at jawbone and were requesting meetings with management to understand more andt the r&d side understand supply-chain issues and is taking that information and leaving, it could make them unethical but not illegal. what they were doing depends on what their motivations were. if they were gathering information performing their regular job duties on a day-to-day basis, nothing wrong with that. if they were gathering intelligence and confidential information to use them in their new employment, that would be something that jawbone would be

concerned about. stephanie: fitbit has been working towards their ipo. last fall, they tried to raise money in the private market and were not able to do it. could jawbone try to make the argument, as they approach their ipo, they are desperate to get this kind of intelligence? scheme just a big grand to take the company public. >> that seems to be what the allegations are leaning towards. also has an obligation if they want to protect their confidential information, to do what they've done here, to file what theyto protect say they've made an effort to secure as confidential and what they say they've made an effort to protect overtime. stephanie: they should have done that. would you say that is an unintended consequence of young come amateur businesses that have not been around that long?

if they did not protect their r&d or information and it's a love to walk out the door, is this something we see often out of young companies in the tech industry who don't know better? >> we do see that from time to time. being able to prove that something is a trade secret, the company is required to show that they've taken reasonable steps to protect it. that's important. it's worthy of protection and worthy of the court intervening. they took a number of steps including requiring people to sign confidentially agreements. question will be what else they did to protect that confidential information from it being revealed to the public and competitors. mark: how do these cases generally play out? >> in my experience, the vast majority of these cases end up settling.

companies don't want their trade secrets and confidential information paraded in front of the public. mark: thank you for your time today. stephanie: this is ugly. when you meet these companies's ceo's, it's a positive environment, they are hanging together, until things like this happen. mark: they are not that far apart in san francisco. this will dominate the headlines out there for a long time. still ahead, you never know what's going on at google i/o. three years ago, skydivers jump out of planes wearing google glasses. what's in store for this year? ♪

stephanie: welcome back to bloomberg market day. i'm stephanie ruhle. mark: let's go straight to julie hyman with a look at the movers in today's session. we've been talking about the big chip deal, the biggest deal we've ever seen in technology, $37 billion. it is 50 door dollars $.50 a share in cash -- $54.50 a share in cash. broadcom lower because it was -- who could be the other targets here?

already been a lot of takeover activity in the semiconductor industry and there is still speculation about more, seeing thissome are deal as frothing this in the market. the philadelphia semiconductor didx is up about 8.5% today, trading more or less sideways, but near a 14.5 year high. we have seen this outperformance of the overall s&p 500 could what does this mean in terms of valuations? this is a chart of recent multiples we have seen on other chip deals. at 24 times --n what have we seen from the other recent deals? about 13.5. this premium that is being paid

is a lot higher than we have seen for other deals in the industry. they're willing to pay up to get synergy, cost cutting. that's why we are seeing this premium. is it justified? i will leave that to the experts. stephanie: happy birthday to your son, julie hyman. turning six. how about the top stories crossing the terminal at this hour? the battle in the wearable device space. ,awbone is suing fitbit accusing the company of stealing its employees and trade secrets. hired aways fitbit five of its employees coming to using those workers of taking secrets with them. -- accusing those workers of taking secrets with them.

the lawsuit comes just as fitbit plans to go public. , analystsw york city pushing back against the regulators. a proposal would require car services that can be booked via smart phone to comply with many rules that govern yellow cabs. the changes would address fares, the availability of wheelchair accessible cars and restrictions on picking up passengers at airports. the company's content of the regulations would discourage innovation. heart stevereaks my schwarzman said if he were 30 years younger, he would be a notch up nor in silicon valley -- and on for newer in silicon valley -- an entrepreneur in silicon valley. he says the tech sector has so much amazing value creation. that's what i think of uber and

lyft. mark: you are not heartbroken. stephanie: i'm not heartbroken, but i hate to see that. they have changed our lives. mark: google's annual developer conference is going on right now. some of the yearly highlights including new android operating , a new mobiled mh -- cory platform johnson is outside the event at san francisco's moscone he center. : that was me sing a dirty word. -- saying a dirty word. live sensors here. it's one of the many important updates at google's mobile operating system. 8500 -- 5500 developers gathered to learn the latest of the

google operating system. it's being held at the center where the iphone was announced. it's a different event than the events apple would hold. would gatherompany waiting to find out with the latest thing is. everybody knows about the payment system that google has had around for a while, they've known about the general trend towards improved security and speed of the new operative system. thingsannounces iteratively, overtime. they continue to make improvements. ners can makepart decisions about what they will make and when they will make it and which pieces of this operating system they want to use. founderse google parachuted into the place while wearing google glass.

they make some noise with their self driving car. , google does things over time, not just at an event like this. the importance is maybe a little less than a big apple announcement. stephanie: what is the point of it all? the expense, the pomp and circumstance. : if you are a developer, it is the biggest mobile operating system in the world. there are tens of thousands of developers in the world who develop on this platform. they want to make some business deals to expand the business as they have built on top of android. the opportunity to have this meetings, to attend sessions where they will learn about new ways to code, those are important for companies running businesses here and that's the main focus here.

building products on this platform. mark: cory johnson outside google i/o. more market day is next. ♪

at the top of world world trade center opens to the public on friday. a ticket to take in the view from 1250 feet up will cost $32. david: it's at the top of one world trade center. it takes 47 seconds. this is the fourth tallest building in the world, the tallest building does not have the tallest observatory. this is not even among the top 10.

the birch khalifa in dubai is the world's tallest building. it's observatory is almost a thousand feet lower than that. when the shanghai tower opens later this year, it will be the second tallest building in the world, but will have the tallest observation deck. skyscrapers compete for visitors and tickets are not cheap. to see the outdoor observatory of the birch khalifa, it will cost $136. tickets are not the only source of revenue. there are lounges and boutiques. there is a bar, a cafe and a steakhouse. observatory expects to earn $825 million from the partnership over the next 15 years. 7 million tourists visit new york observatories every year. in the next few years, it's

estimated that number could grow to 9 million. oneworld absorber tori -- observatory -- that elevator ride is amazing and nauseating. the view is spectacular. i asked, how hard would it be to get reservations at the restaurant? you can get them the day of. there are already corporate board meetings planned there. $32 to get up there. dinner is expensive. stephanie: guess what, guys? thanks for having me. i'm signing off. mark: she's gone, i'm back. ♪

mark: welcome back to the bloomberg market day dime mark crumpton in new york. thank you first in with us. let's get you to the top stories we are following at this hour. the latest on greece.

the eu commissioner for economic affairs says talks are "certainly not three quarters of the way. we need to work day and night." germany and france delivered a message to greece, it's time to get serious. a group of finance ministers have lined up to reject greek claims that a deal is near on freeing up bailout money. once again today, the greek government says there will be an agreement soon. greece needs the money to back a loan to the imf that is due next week. yeley connoisseur robert schiller warns the greek crisis must be solved. >> it could lead to a story that is very destabilizing. the original greek story should not have involved italy and portugal and spain. the ecb agrees with mr. schiller.

it says euro area oh bond yields could rise. the top u.s. and iranian diplomats plan to meet this weekend in switzerland. in an effort to reach a nuclear and the iranian foreign minister will hold talks saturday in geneva. european and iranian officials that's adjusted -- the u.s. is not considering an extension. it's been cold of the worst coastal oil spill in california and a quarter of a century. -- in a quarter of a century. this spill blackened beaches and created a 10 mile oil slick in the pacific. res has formed and off mexico but poses no threat to land. the national hurricane center says it's executive strengthen and could become a hurricane by late friday.

dick fuld's is back in the spotlight. he has become the poster child for excessive risk-taking on wall street. what does he have to say for himself now? olivia sterns joins me now with more on this. olivia: we all wanted to hear what he was going to say about lehman brothers. got -- he how he spoke about lehman's decision to go from being a fixed income trading to a universal investment bank. he spoke about what he thought made lehman brothers one of the great wall street banks and he said the key differentiator was the culture. he said people talk about lehman brothers did not have adequate risk management. had 27,000 risk managers in

the form of employees because all of my employees held a stock in one way or another and acted like shareholders. please later said respect the fact that i don't want to talk about lehman brothers but finished up by saying lehman brothers was not bankrupt in september of 2008. mark: why is he saying this now? olivia: great question. why does you suddenly want to go public talking at a penny stock conference? there was a bit of legal overhang for the first few years. that has gone away. he said he thought it was time. not a day goes by that i do not think about lehman brothers. but i have to move on. he was asked why he was going -- he saidusiness "bite me" in a joking manner.

he says this is about redemption. i have a team and we love to build businesses. he 69 years old, back in the game. he made a couple jokes at the end. he says it's easy to look back and could have, would have, should have. he said he would have bought himself a time machine and says his 96 euros mother loves him and he is going to donate his speaker fees to charity. that's his 96-year-old mother loves them. the government was driving the bulk that she blamed government -- he blamed government incentives olivia stu so much. , weng up in the next hour will have the latest on the greek bailout talks and how the

markets are reacting in europe. when will the u.s. federal reserve raise interest rates? a preview of our conversation with james bullard. setbacks and cost overrun, the military is in the final testing phases for the f 35 fighter jet. we will get a closer look. costco is out with its latest results. posting third-quarter profit the top estimates. sales gains beat rivals like walmarts sam's club warehouse. costco's cfo said sales were held back by a number of factors. >> compared to a year ago in the third quarter this year, currencies weakened against the u.s. dollar. primarily in canada, mexico, korea and japan. inulting in a hard earnings q3 when converted into u.s. dollars. mark: joining me now is matt

townsend. so much. there is a lot that looks good about this but there are some things that are a bit murky. specifically the strength of the u.s. dollar, foreign exchange and gas prices. >> you saw it in the numbers. a -1%, totaled because of a 350 basis point hit pointas and 300 basis hit from -- gas prices are expected to stay low. the dollar has given back some of its strength, it still much stronger than it was last year. you will see those two factors continue to impact costco. this?does costco see >> they do. you look at international sales, they were down six overall.

it shows you how much that affected their international business. mark: you talk about costco -- we spoke about this earlier. it is still wildly popular. >> it is. the best -- their merchandising, their service and the way they bring product to market, their well ahead of their competition. that has not changed. the core strength of the business is still there. mark: anything in the numbers we gleamed that we are not taking a closer look at? is there anything that jumped out at you when you saw this? >> they talked about the percentage -- the number of new members they got in the quarter was down slightly. membership is how they make their money. they chopped up to a little bit of the previous quarter a year

ago having more store openings in asia. that would be somewhat of a concern. the response from analysts was pretty positive. the stock is trading flat to down. they did miss a bit on the top line because of the x of gas. chen said cosco remains a top retail stock thanks to its treasure hunt shopping experience. what is that about? >> when you walk into costco, you can't help but pick out items -- the beauty of costco and dollar tree. they do a fantastic job of bringing exciting items to stores that are impromptu purchases. mark: what about the rivals? what are they not doing? >> a lot of people point to cost

customer service. hunt makescavenger the store experience exciting first going online. -- versus going online. , owned bym's club walmart, they had one of their worst quarters and years. -- in years. it's basically costco taking share from sam's club. -- it's a brand for them and they have built as a brand. mark: was it a risk for them to do that? >> kirkland has been around for a long time. once you've built customer acceptance of the brand and once the customer has realized that it is high-quality, that's something sam's club has not been able to replicate.

the kirkland brand is very strong. mark: thank you both so much. , traders continue to get next messages about the progress of talks between greece and its creditors. -- mixed messages. ♪

mark: welcome back to the bloomberg market day. let's get straight to a check of the markets. julie hyman has the details.

julie: we are seeing stocks selloff today, not a huge one. not as big as the selloff we saw on tuesday. a pulling back across the board peered brokers and china tightened their margin lending requirements. uncertainty continuing about greece and whether there will be some sort of solution there. we do have a pull back across the board. mention the other asset classes, taking a look at the dollar, for example. we are seeing the dollar traded at about a one-month high. here we are today on the dollar. -- quite as high as we were right.he third straight

we've seen the dollar higher for seven of the last nine sessions. in particular, we have seen a notable move in the dollar versus the japanese yen where it's been trading at about a 12 year high. here, you-term chart can see it's trading at the highest in quite some time. i wanted to mention what's been going on with oil. oil typically does not react well to a higher dollar. here is the year to date chart. trading at a one-month low. --e we are today, again let's switch it over, shall we? here we are, one-month low for the price of oil. a larger than estimated draw down in oil inventories or stockpiles, there is still a lot of speculation about what will happen next not a lot of optimism about the glut out

there and whether it will be significantly reduced. report,er the positive what you would think would be .ositive oil has not been mark: roslyn chen reports on the trouble to chinese developer. let's go to london and ryan chilcote. ryan: let me give you the lay of the land. mostly read. it was already a short while ago. pullve seen the u.k. through. portugal as well coming out just above -- up on the day. some corporate movers in the retail sector. international is the best mover today. they will have better sales than originally thought.

kingfisher is the biggest retailer -- diy retailer in europe. isional bank of greece greece's biggest bank. we heard the ecb talking about in the euro zone. as a result of those negotiations going on forever. you can see that right there with that stock. you see the euro held its own today. not be said for the pound, which was down just a tad. we had a surgeon dollar strength. -- a surge in dollar strength. economists were looking for 0.4 -- they punished the pound as a result. >> certain conditions were not

met according to a hong kong stock exchange filing. the deal had been worth $1.2 billion. those conditions included a restructuring of debt and resolving business he regularly is. bondholders could not agree on a deal. they were china's first property developer to default on u.s. currency debt. chairman returned the company after several months. suggesting he has changed his mind about selling off. a wrongful death lawsuit filed by the family of michael brown is moving to federal court. brown was shot and killed by a white police officer in metro st. louis last august. his death touched off months of unrest. the suit was filed last month in state court. the st. louis post-dispatch says

it's moving to the federal level on grounds that a deal that it deals with constitutional issues. honda motors says it will -- 350,000 vehicles to its recalls. most of the vehicles were already subject to previous voluntary actions taken by honda. investigators are continuing to search for the root cause of the defect that has killed at least six people. george but tacky is the eighth republican to enter the race for the white house. -- george pataki announced his candidacy on youtube. he has been out of office since 2006. yesterday, rick santorum officially entered the race. it will be a wild weekend in the nhl playoffs. the chicago blackhawks beat the anaheim ducks last night, setting up a winner take all game seven in the western conference finals on saturday in anaheim. tomorrow, the rangers host tampa

bay in game seven of the eastern conference finals. a ticket to that game is pricier than any nonfinal game seven for a u.s. sport since 2011. the average resale price, $1240. scarlet fu is joining me in the next hour. we are both excited about tomorrow's game seven. scarlet: i wonder -- my husband has season tickets. i wonder who won the jackpot and is going to tomorrow's game. mark: it's a friday. scarlet: the prices should go up even more. i'm hoping for an original six who wants to see tampa bay versus anaheim? yeah come expansion teams made the finals. who else cares? mark: if the rangers play chicago, it could get ugly. chicago is very good. i'm assuming the rangers will win this game.

scarlet: you should. today -- tor story say funny is an understatement. elizabeth had a great piece today -- banks are going through awkward phase. like a teenager with bad pimples and bad hair. in a couple years, they will be really attractive. hang with us, keep dating us, we will come around. scarlet: banks have been waiting and waiting for any kind of interest rate increase. that has not happened over the last couple years. have net interest margins been razor thin. everyone is waiting for interest rates to pick up. remainedends have fairly stable and have cut costs aggressively.

mark: investors can tolerate us at this part of the cycle, you will love us when things get better. scarlet: we will see. oftentimes, investors bid them up. james fuller will be speaking to bloomberg television at three clock p.m. -- three clock p.m. -- 3:00 p.m. becoming more hawkish over the past year. therefore, his views don't reflect the concerns of the fomc overall which is much more dovish. mark: scarlet, thank you so much. still ahead, after years of setbacks and cost overruns, the military is in the final testing stages for the f 35 fighter jet. we will check it out, next. ♪

mark: welcome back. america's most expensive weapons program is close to passing a major milestone. operational testing this month could finally clear the f-35 fighter jet for combat duty. peter cook reports. peter: off the north carolina coast, the f-35 is being put to the test. >> the thoroughbred wants to go. you can feel the airplane rearing up. peter: this fifth generation stealth fighter has been hailed as the future of american combat aviation. the pentagon plans to buy 2400 four $400 billion. being $160 billion over budget and seven years behind

has yet tohe f-35 fly in combat. this week, read pilots this marine pilots are trying to show that the future is now. the f-35 is finally ready for action. >> i watched every single take off and landing. it's a great site to see. >> with its ability to land --tically, the green version marine version is the most cap located. -- complicated. >> john davis is in charge of marine aviation. >> i'm confident that we are on the right track and this will be a real winner. --combat static this summer status this summer would be a huge step forward. just last month, congressional auditors concluded very poor engine reliability could progress.-35

one longtime critic says he is seeing improvement. >> if i had to do it all over again, i would not approve of that kind of system and the cost overruns associated with it. stage that is at the it is, we need to go ahead and continue to acquire it. >> these greens hope to show the world it's money well spent. -- these marines hope to show the world it's money well spent. waspce the testing on the is complete, there will be a final inspection by the marine corps and they could get the certification as early as july. mark: peter cook, thanks for coming up, our conversation with -- ♪ ♪

scarlet: this is the bloomberg market day. mark: dick fuld has been rarely seen since seven years.

he has reemerged in the spotlight today. we will have details. scarlet: more fallout from fifa. the european soccer organization has called on sepp blatter to quit. handsmore money changing in china than the u.s. what's driving this record -- good afternoon from bloomberg world headquarters in new york i'm mark crumpton, here with scarlet fu. scarlet: u.s. stocks were at record highs, then have come down a little bit here. off by 64 points. .3%.&p 500 losing